Valmiki J. Mehta, J.:-

1. An issue of far reaching importance calls for decision in the present petition which is filed under Section 34 of the Arbitration & Conciliation Act, 1996. On behalf of the petitioner/Union of India, it is argued that in view of Clause 16(2) of the General Conditions of Contract (GCC) applicable to the contract in question, petitioner cannot be held liable for payment of any interest on the amounts awarded by the Arbitrator to the respondent/contractor, and that this defence and shield of non-liability for payment of interest enures for the benefit of the petitioner irrespective of the length of the time for which arbitral and court/judicial proceedings continue. In sum and substance, it is argued that even if the petitioner/UOI is found liable to pay any amount to the contractor, whether in a civil suit or any arbitration proceedings by an award, petitioner because of Clause 16(2) of the GCC cannot be called upon to pay interest for the pre-reference/present period or the post reference period including pendente lite period and till passing of the Award/decree.

2. Counsel for the petitioner places reliance upon, the below mentioned judgments of t